(126th General Assembly) (Substitute House Bill Number 149) AN ACT

Transcription

1 (126th General Assembly) (Substitute House Bill Number 149) AN ACT To amend sections , , , , and and to enact sections , , , and of the Revised Code to authorize refundable tax credits for rehabilitating historic buildings and to exempt from the sales and use taxes property used to clean manufacturing equipment that produces dairy products. Be it enacted by the General Assembly of the State of Ohio: SECTION 1. That sections , , , , and be amended and sections , , , and of the Revised Code be enacted to read as follows: Sec (A) As used in this section: (1) "Historic building" means a building, including its structural components, that is located in this state and that is either individually listed on the national register of historic places under 16 U.S.C. 470a, located in a registered historic district, and certified by the state historic preservation officer as being of historic significance to the district, or is individually listed as a historic landmark designated by a local government certified under 16 U.S.C. 470a(c). (2) "Qualified rehabilitation expenditures" means expenditures paid or incurred during the rehabilitation period, and before and after that period as determined under 26 U.S.C. 47, by an owner of a historic building to rehabilitate the building. "Qualified rehabilitation expenditures" includes architectural or engineering fees paid or incurred in connection with the rehabilitation, and expenses incurred in the preparation of nomination forms for listing on the national register of historic places. "Qualified rehabilitation expenditures" does not include any of the following: (a) The cost of acquiring, expanding, or enlarging a historic building; (b) Expenditures attributable to work done to facilities related to the building, such as parking lots, sidewalks, and landscaping; (c) New building construction costs.

2 2 (3) "Owner" of a historic building means a person holding the fee simple interest in the building. (4) "Certificate owner" means the owner of a historic building to which a rehabilitation tax credit certificate was issued under this section. (5) "Registered historic district" means a historic district listed in the national register of historic places under 16 U.S.C. 470a, a historic district designated by a local government certified under 16 U.S.C. 470a(c), or a local historic district certified under 36 C.F.R and (6) "Rehabilitation" means the process of repairing or altering a historic building or buildings, making possible an efficient use while preserving those portions and features of the building and its site and environment that are significant to its historic, architectural, and cultural values. (7) "Rehabilitation period" means one of the following: (a) If the rehabilitation initially was not planned to be completed in stages, a period chosen by the owner not to exceed twenty-four months during which rehabilitation occurs; (b) If the rehabilitation initially was planned to be completed in stages, a period chosen by the owner not to exceed sixty months during which rehabilitation occurs. (8) "State historic preservation officer" or "officer" means the state historic preservation officer appointed by the governor under 16 U.S.C. 470a. (9) "Application period" means either of the following time periods during which an application for a rehabilitation tax credit certificate may be filed under this section: (a) July 1, 2007, through June 30, 2008; (b) July 1, 2008, through June 30, (B) On or after July 1, 2007, but before July 1, 2009, the owner of a historic building may apply to the state historic preservation officer for a rehabilitation tax credit certificate for qualified rehabilitation expenditures paid or incurred after the effective date of this section for rehabilitation of a historic building. The form and manner of filing such applications shall be prescribed by rule of the director of development, and applications expire at the end of each application period. Before July 1, 2007, the director, after consultation with the tax commissioner and in accordance with Chapter 119. of the Revised Code, shall adopt rules that establish all of the following: (1) Forms and procedures by which applicants may apply for rehabilitation tax credit certificates; (2) Criteria for reviewing, evaluating, and approving applications for certificates within the limitation on the number of applications that may be

3 3 approved in an application period under division (D) of this section, criteria for assuring that the certificates issued encompass a mixture of high and low qualified rehabilitation expenditures, and criteria for issuing certificates under division (C)(3)(b) of this section; (3) Eligibility requirements for obtaining a certificate under this section; (4) The form of rehabilitation tax credit certificates; (5) Reporting requirements and monitoring procedures; (6) Any other rules necessary to implement and administer this section. (C) The state historic preservation officer shall accept applications in the order in which they are filed. Within seven days after an application is filed, the officer shall forward it to the director of development who shall review the application and determine whether all of the following criteria are met: (1) That the building that is the subject of the application is a historic building and the applicant is the owner of the building; (2) That the rehabilitation will satisfy standards prescribed by the United States secretary of the interior under 16 U.S.C. 470, et seq., as amended, and 36 C.F.R or a successor to that section; (3) That receiving a rehabilitation tax credit certificate under this section is a major factor in: (a) The applicant's decision to rehabilitate the historic building; or (b) To increase the level of investment in such rehabilitation. An applicant shall demonstrate to the satisfaction of the state historic preservation officer and director of development that the rehabilitation will satisfy the standards described in division (C)(2) of this section before the applicant begins the physical rehabilitation of the historic building. (D) If the director of development determines that the criteria in divisions (C)(1), (2), and (3) of this section are met, the director, in conjunction with the tax commissioner, shall conduct a cost and benefit analysis for the historic building that is the subject of an application filed under this section to determine whether rehabilitation of the historic building will result in a net revenue gain in state and local taxes once the building is used. The director shall not approve an application and issue a rehabilitation tax credit certificate to an applicant unless the cost and benefit analysis of the historic building determines that there will be a net revenue gain in state and local taxes once the building is used. A rehabilitation tax credit certificate shall not be issued before rehabilitation of a historic building is completed. The director shall not approve more than one hundred applications in an application period. (E) Issuance of a certificate represents a finding by the director of

4 4 development of the matters described in divisions (C)(1), (2), and (3) of this section only; issuance of a certificate does not represent a verification or certification by the director of the amount of qualified rehabilitation expenditures for which a tax credit may be claimed under section , , or of the Revised Code. The amount of qualified rehabilitation expenditures for which a tax credit may be claimed is subject to inspection and examination by the tax commissioner or employees of the commissioner under section of the Revised Code and any other applicable law. Upon the issuance of a certificate, the director shall certify to the tax commissioner, in the form and manner requested by the tax commissioner, the name of the applicant, the amount of qualified rehabilitation expenditures shown on the certificate, and any other information required by the rules adopted under this section. (F)(1) On or before the first day of December in 2007, 2008, and 2009, the director of development and tax commissioner jointly shall submit to the president of the senate and the speaker of the house of representatives a report on the tax credit program established under this section and sections , , and of the Revised Code. The report shall present an overview of the program and shall include information on the number of rehabilitation tax credit certificates issued under this section during an application period, an update on the status of each historic building for which an application was approved under this section, the dollar amount of the tax credits granted under sections , , and of the Revised Code, and any other information the director and commissioner consider relevant to the topics addressed in the report. (2) On or before December 1, 2010, the director of development and tax commissioner jointly shall submit to the president of the senate and the speaker of the house of representatives a comprehensive report that includes the information required by division (F)(1) of this section and a detailed analysis of the effectiveness of issuing tax credits for rehabilitating historic buildings. The report shall be prepared with the assistance of an economic research organization jointly chosen by the director and commissioner. Sec (A) As used in this section, "certificate owner" has the same meaning as in section of the Revised Code. (B) There is allowed a refundable credit against the tax imposed by section and assessed under section of the Revised Code for a dealer in intangibles subject to that tax that is a certificate owner of a rehabilitation tax credit certificate issued under section of the Revised Code. The credit shall equal twenty-five per cent of the dollar amount indicated on the certificate. The credit shall be claimed in the

5 5 calendar year specified in the certificate. (C) A dealer in intangibles claiming a credit under this section shall retain the rehabilitation tax credit certificate for four years following the end of the year in which the credit was claimed, and shall make the certificate available for inspection by the tax commissioner upon the request of the tax commissioner during that period. (D) For the purpose of division (C) of section of the Revised Code, reductions in the amount of taxes collected on account of credits allowed under this section shall be applied to reduce the amount credited to the general revenue fund and shall not be applied to reduce the amount to be credited to the undivided local government funds of the counties in which such taxes originate. Sec (A) As used in this section, "qualifying dealer" means a dealer in intangibles that is a qualifying dealer in intangibles as defined in section of the Revised Code or a member of a qualifying controlled group, as defined in section of the Revised Code, of which an insurance company also is a member on the first day of January of the year in and for which the tax imposed by section of the Revised Code is required to be paid by the dealer. (B) The taxes levied by section of the Revised Code and collected pursuant to this chapter shall be paid into the state treasury to the credit of the general revenue fund. (C) The taxes levied by section of the Revised Code on the value of shares in and capital employed by dealers in intangibles other than those that are qualifying dealers shall be for the use of the general revenue fund of the state and the local government funds of the several counties in which the taxes originate as provided in this division. On or before the first day of each month on which there is money in the state treasury for disbursement under this division, the tax commissioner shall provide for payment to the county treasurer of each county of five-eighths of the amount of the taxes collected on account of shares in and capital employed by dealers in intangibles other than those that are qualifying dealers, representing capital employed in the county. The balance of the money received and credited on account of taxes assessed on shares in and capital employed by such dealers in intangibles shall be credited to the general revenue fund. Reductions in the amount of taxes collected on account of credits allowed under section of the Revised Code shall be applied to reduce the amount credited to the general revenue fund and shall not be applied to reduce the amount to be credited to the undivided local

6 6 government funds of the counties in which such taxes originate. For the purpose of this division, such taxes are deemed to originate in the counties in which such dealers in intangibles have their offices. Money received into the treasury of a county pursuant to this section shall be credited to the undivided local government fund of the county and shall be distributed by the budget commission as provided by law. (D) All of the taxes levied under section of the Revised Code on the value of the shares in and capital employed by dealers in intangibles that are qualifying dealers shall be paid into the state treasury to the credit of the general revenue fund. Sec (A) The tax provided by this chapter for domestic corporations shall be the amount charged against each corporation organized for profit under the laws of this state and each nonprofit corporation organized pursuant to Chapter of the Revised Code, except as provided in sections and of the Revised Code, for the privilege of exercising its franchise during the calendar year in which that amount is payable, and the tax provided by this chapter for foreign corporations shall be the amount charged against each corporation organized for profit and each nonprofit corporation organized or operating in the same or similar manner as nonprofit corporations organized under Chapter of the Revised Code, under the laws of any state or country other than this state, except as provided in sections and of the Revised Code, for the privilege of doing business in this state, owning or using a part or all of its capital or property in this state, holding a certificate of compliance with the laws of this state authorizing it to do business in this state, or otherwise having nexus in or with this state under the Constitution of the United States, during the calendar year in which that amount is payable. (B) A corporation is subject to the tax imposed by section of the Revised Code for each calendar year that it is so organized, doing business, owning or using a part or all of its capital or property, holding a certificate of compliance, or otherwise having nexus in or with this state under the Constitution of the United States, on the first day of January of that calendar year. (C) Any corporation subject to this chapter that is not subject to the federal income tax shall file its returns and compute its tax liability as required by this chapter in the same manner as if that corporation were subject to the federal income tax. (D) For purposes of this chapter, a federally chartered financial institution shall be deemed to be organized under the laws of the state within

7 7 which its principal office is located. (E) For purposes of this chapter, any person, as defined in section of the Revised Code, shall be treated as a corporation if the person is classified for federal income tax purposes as an association taxable as a corporation, and an equity interest in the person shall be treated as capital stock of the person. (F) For the purposes of this chapter, "disregarded entity" has the same meaning as in division (D) of section of the Revised Code. (1) A person's interest in a disregarded entity, whether held directly or indirectly, shall be treated as the person's ownership of the assets and liabilities of the disregarded entity, and the income, including gain or loss, shall be included in the person's net income under this chapter. (2) Any sale, exchange, or other disposition of the person's interest in the disregarded entity, whether held directly or indirectly, shall be treated as a sale, exchange, or other disposition of the person's share of the disregarded entity's underlying assets or liabilities, and the gain or loss from such sale, exchange, or disposition shall be included in the person's net income under this chapter. (3) The disregarded entity's payroll, property, and sales factors shall be included in the person's factors. (G) The tax a corporation is required to pay under this chapter shall be as follows: (1)(a) For financial institutions, the greater of the minimum payment required under division (E) of section of the Revised Code or the difference between all taxes charged the financial institution under this chapter, without regard to division (G)(2) of this section, less any credits allowable against such tax. (b) A corporation satisfying the description in division (E)(5), (6), (7), (8), or (10) of section of the Revised Code that is not a financial institution, insurance company, or dealer in intangibles is subject to the taxes imposed under this chapter as a corporation and not subject to tax as a financial institution, and shall pay the greater of the minimum payment required under division (E) of section of the Revised Code or the difference between all the taxes charged under this chapter, without regard to division (G)(2) of this section, less any credits allowable against such tax. (2) For all corporations other than those persons described in division (G)(1)(a) or (b) of this section, the amount under division (G)(2)(a) of this section applicable to the tax year specified less the amount under division (G)(2)(b) of this section: (a)(i) For tax year 2005, the greater of the minimum payment required

8 8 under division (E) of section of the Revised Code or the difference between all taxes charged the corporation under this chapter and any credits allowable against such tax; (ii) For tax year 2006, the greater of the minimum payment required under division (E) of section of the Revised Code or four-fifths of the difference between all taxes charged the corporation under this chapter and any credits allowable against such tax, except the qualifying pass-through entity tax credit described in division (A)(29) and the refundable credits described in divisions (A)(30), (31), (32), and (33) to (34) of section of the (iii) For tax year 2007, the greater of the minimum payment required under division (E) of section of the Revised Code or three-fifths of the difference between all taxes charged the corporation under this chapter and any credits allowable against such tax, except the qualifying pass-through entity tax credit described in division (A)(29) and the refundable credits described in divisions (A)(30), (31), (32), and (33) to (34) of section of the (iv) For tax year 2008, the greater of the minimum payment required under division (E) of section of the Revised Code or two-fifths of the difference between all taxes charged the corporation under this chapter and any credits allowable against such tax, except the qualifying pass-through entity tax credit described in division (A)(29) and the refundable credits described in divisions (A)(30), (31), (32), and (33) to (34) of section of the (v) For tax year 2009, the greater of the minimum payment required under division (E) of section of the Revised Code or one-fifth of the difference between all taxes charged the corporation under this chapter and any credits allowable against such tax, except the qualifying pass-through entity tax credit described in division (A)(29) and the refundable credits described in divisions (A)(30), (31), and (32), and (33) of section of the (vi) For tax year 2010 and each tax year thereafter, no tax. (b) A corporation shall subtract from the amount calculated under division (G)(2)(a)(ii), (iii), (iv), or (v) of this section any qualifying pass-through entity tax credit described in division (A)(29) and any refundable credits described in divisions (A)(30), (31), (32), and (33) to (34) of section of the Revised Code to which the corporation is entitled. Any unused qualifying pass-through entity tax credit is not refundable. (c) For the purposes of computing the amount of a credit that may be carried forward to a subsequent tax year under division (G)(2) of this

9 9 section, a credit is utilized against the tax for a tax year to the extent the credit applies against the tax for that tax year, even if the difference is then multiplied by the applicable fraction under division (G)(2)(a) of this section. (3) Nothing in division (G) of this section eliminates or reduces the tax imposed by section of the Revised Code on a qualifying pass-through entity. Sec (A) As used in this section, "certificate owner" has the same meaning as in section of the Revised Code. (B) There is allowed a refundable credit against the tax imposed under section of the Revised Code for a taxpayer that is a certificate owner of a rehabilitation tax credit certificate issued under section of the Revised Code. The credit shall equal twenty-five per cent of the dollar amount indicated on the certificate. The credit shall be claimed for the tax year specified in the certificate and in the order required under section of the Revised Code. For purposes of making tax payments under this chapter, taxes equal to the amount of the refundable credit shall be considered to be paid to the state on the first day of the tax year. (C) A taxpayer claiming a credit under this section shall retain the rehabilitation tax credit certificate for four years following the end of the tax year to which the credit was applied, and shall make the certificate available for inspection by the tax commissioner upon the request of the tax commissioner during that period. (D) If, pursuant to division (G) of section of the Revised Code, a taxpayer no longer pays a tax under this chapter, the taxpayer may nonetheless file an annual report under section of the Revised Code and claim the refundable credit authorized by this section. Nothing in this division allows a taxpayer to claim the credit under this section more than once. Sec (A) To provide a uniform procedure for calculating the amount of tax imposed by section of the Revised Code that is due under this chapter, a taxpayer shall claim any credits to which it is entitled in the following order, except as otherwise provided in section of the Revised Code: (1) For tax year 2005, the credit for taxes paid by a qualifying pass-through entity allowed under section of the (2) The credit allowed for financial institutions under section of the (3) The credit for qualifying affiliated groups under section of the (4) The subsidiary corporation credit under section of the

10 10 (5) The savings and loan assessment credit under section of the (6) The credit for recycling and litter prevention donations under section of the (7) The credit for employers that enter into agreements with child day-care centers under section of the (8) The credit for employers that reimburse employee child care expenses under section of the (9) The credit for maintaining railroad active grade crossing warning devices under section of the (10) The credit for purchases of lights and reflectors under section of the (11) The job retention credit under division (B) of section of the (12) The credit for purchases of new manufacturing machinery and equipment under section or section of the (13) The second credit for purchases of new manufacturing machinery and equipment under section of the (14) The job training credit under section of the (15) The credit for qualified research expenses under section of the (16) The enterprise zone credit under section of the Revised Code; (17) The credit for the eligible costs associated with a voluntary action under section of the (18) The credit for employers that establish on-site child day-care centers under section of the (19) The ethanol plant investment credit under section of the (20) The credit for purchases of qualifying grape production property under section of the (21) The export sales credit under section of the Revised Code; (22) The credit for research and development and technology transfer investors under section of the (23) The enterprise zone credits under section of the Revised Code; (24) The credit for using Ohio coal under section of the

11 11 (25) The credit for small telephone companies under section of the (26) The credit for eligible nonrecurring charges under section of the (27) For tax year 2005, the credit for providing programs to aid the communicatively impaired under division (A) of section of the (28) The research and development credit under section of the (29) For tax years 2006 and subsequent tax years, the credit for taxes paid by a qualifying pass-through entity allowed under section of the (30) The refundable credit for rehabilitating a historic building under section of the (31) The refundable jobs creation credit under division (A) of section of the (31)(32) The refundable credit for tax withheld under division (B)(2) of section of the (32)(33) The refundable credit under section of the Revised Code for losses on loans made to the Ohio venture capital program under sections to of the (33)(34) For tax years 2006, 2007, and 2008, the refundable credit allowable under division (B) of section of the Revised Code. (B) For any credit except the credits enumerated in divisions (A)(30), (31), (32), and (33) to (34) of this section, the amount of the credit for a tax year shall not exceed the tax due after allowing for any other credit that precedes it in the order required under this section. Any excess amount of a particular credit may be carried forward if authorized under the section creating that credit. Sec (A) As used in this section: (1) "Manufacturer" means a person who is engaged in manufacturing, processing, assembling, or refining a product for sale and, solely for the purposes of division (B)(12) of this section, a person who meets all the qualifications of that division. (2) "Manufacturing facility" means a single location where a manufacturing operation is conducted, including locations consisting of one or more buildings or structures in a contiguous area owned or controlled by the manufacturer. (3) "Materials handling" means the movement of the product being or to be manufactured, during which movement the product is not undergoing any

12 12 substantial change or alteration in its state or form. (4) "Testing" means a process or procedure to identify the properties or assure the quality of a material or product. (5) "Completed product" means a manufactured item that is in the form and condition as it will be sold by the manufacturer. An item is completed when all processes that change or alter its state or form or enhance its value are finished, even though the item subsequently will be tested to ensure its quality or be packaged for storage or shipment. (6) "Continuous manufacturing operation" means the process in which raw materials or components are moved through the steps whereby manufacturing occurs. Materials handling of raw materials or parts from the point of receipt or preproduction storage or of a completed product, to or from storage, to or from packaging, or to the place from which the completed product will be shipped, is not a part of a continuous manufacturing operation. (B) For purposes of division (B)(42)(g) of section of the Revised Code, the "thing transferred" includes, but is not limited to, any of the following: (1) Production machinery and equipment that act upon the product or machinery and equipment that treat the materials or parts in preparation for the manufacturing operation; (2) Materials handling equipment that moves the product through a continuous manufacturing operation; equipment that temporarily stores the product during the manufacturing operation; or, excluding motor vehicles licensed to operate on public highways, equipment used in intraplant or interplant transfers of work in process where the plant or plants between which such transfers occur are manufacturing facilities operated by the same person; (3) Catalysts, solvents, water, acids, oil, and similar consumables that interact with the product and that are an integral part of the manufacturing operation; (4) Machinery, equipment, and other tangible personal property used during the manufacturing operation that control, physically support, produce power for, lubricate, or are otherwise necessary for the functioning of production machinery and equipment and the continuation of the manufacturing operation; (5) Machinery, equipment, fuel, power, material, parts, and other tangible personal property used to manufacture machinery, equipment, or other tangible personal property used in manufacturing a product for sale; (6) Machinery, equipment, and other tangible personal property used by

13 13 a manufacturer to test raw materials, the product being manufactured, or the completed product; (7) Machinery and equipment used to handle or temporarily store scrap that is intended to be reused in the manufacturing operation at the same manufacturing facility; (8) Coke, gas, water, steam, and similar substances used in the manufacturing operation; machinery and equipment used for, and fuel consumed in, producing or extracting those substances; machinery, equipment, and other tangible personal property used to treat, filter, pump, or otherwise make the substance suitable for use in the manufacturing operation; and machinery and equipment used for, and fuel consumed in, producing electricity for use in the manufacturing operation; (9) Machinery, equipment, and other tangible personal property used to transport or transmit electricity, coke, gas, water, steam, or similar substances used in the manufacturing operation from the point of generation, if produced by the manufacturer, or from the point where the substance enters the manufacturing facility, if purchased by the manufacturer, to the manufacturing operation; (10) Machinery, equipment, and other tangible personal property that treats, filters, cools, refines, or otherwise renders water, steam, acid, oil, solvents, or similar substances used in the manufacturing operation reusable, provided that the substances are intended for reuse and not for disposal, sale, or transportation from the manufacturing facility; (11) Parts, components, and repair and installation services for items described in division (B) of this section; (12) Machinery and equipment, detergents, supplies, solvents, and any other tangible personal property located at a manufacturing facility that are used in the process of removing soil, dirt, or other contaminants from, or otherwise preparing in a suitable condition for use, towels, linens, articles of clothing, floor mats, mop heads, or other similar items, to be supplied to a consumer as part of laundry and dry cleaning services as defined in division (BB) of section of the Revised Code, only when the towels, linens, articles of clothing, floor mats, mop heads, or other similar items belong to the provider of the services; (13) Equipment and supplies used to clean processing equipment that is part of a continuous manufacturing operation to produce milk, ice cream, yogurt, cheese, and similar dairy products for human consumption. (C) For purposes of division (B)(42)(g) of section of the Revised Code, the "thing transferred" does not include any of the following: (1) Tangible personal property used in administrative, personnel,

14 14 security, inventory control, record-keeping, ordering, billing, or similar functions; (2) Tangible personal property used in storing raw materials or parts prior to the commencement of the manufacturing operation or used to handle or store a completed product, including storage that actively maintains a completed product in a marketable state or form; (3) Tangible personal property used to handle or store scrap or waste intended for disposal, sale, or other disposition, other than reuse in the manufacturing operation at the same manufacturing facility; (4) Tangible personal property that is or is to be incorporated into realty; (5) Machinery, equipment, and other tangible personal property used for ventilation, dust or gas collection, humidity or temperature regulation, or similar environmental control, except machinery, equipment, and other tangible personal property that totally regulates the environment in a special and limited area of the manufacturing facility where the regulation is essential for production to occur; (6) Tangible personal property used for the protection and safety of workers, unless the property is attached to or incorporated into machinery and equipment used in a continuous manufacturing operation; (7) Tangible personal property used to store fuel, water, solvents, acid, oil, or similar items consumed in the manufacturing operation; (8) Machinery Except as provided in division (B)(13) of this section, machinery, equipment, and other tangible personal property used to clean, repair, or maintain real or personal property in the manufacturing facility; (9) Motor vehicles registered for operation on public highways. (D) For purposes of division (B)(42)(g) of section of the Revised Code, if the "thing transferred" is a machine used by a manufacturer in both a taxable and an exempt manner, it shall be totally taxable or totally exempt from taxation based upon its quantified primary use. If the "things transferred" are fungibles, they shall be taxed based upon the proportion of the fungibles used in a taxable manner. Sec (A) As used in this section, "certificate owner" has the same meaning as in section of the Revised Code. (B) There is allowed a refundable credit against the tax imposed under section of the Revised Code for a taxpayer that is the certificate owner of a rehabilitation tax credit certificate issued under section of the Revised Code. The credit shall equal twenty-five per cent of the dollar amount indicated on the certificate. The credit shall be claimed for the taxable year specified in the certificate and in the order required under section of the Revised Code. For purposes of making tax payments

15 15 under this chapter, taxes equal to the amount of the refundable credit shall be considered to be paid to the state on the first day of the taxable year. (C) Nothing in this section limits or disallows pass-through treatment of the credit if the certificate owner is a pass-through entity. (D) A taxpayer claiming a credit under this section shall retain the rehabilitation tax credit certificate for four years following the end of the taxable year to which the credit was applied, and shall make the certificate available for inspection by the tax commissioner upon the request of the tax commissioner during that period. Sec (A) To provide a uniform procedure for calculating the amount of tax due under section of the Revised Code, a taxpayer shall claim any credits to which the taxpayer is entitled in the following order: (1) The retirement income credit under division (B) of section of the (2) The senior citizen credit under division (C) of section of the (3) The lump sum distribution credit under division (D) of section of the (4) The dependent care credit under section of the Revised Code; (5) The lump sum retirement income credit under division (C) of section of the (6) The lump sum retirement income credit under division (D) of section of the (7) The lump sum retirement income credit under division (E) of section of the (8) The low-income credit under section of the (9) The credit for displaced workers who pay for job training under section of the (10) The campaign contribution credit under section of the (11) The twenty-dollar personal exemption credit under section of the (12) The joint filing credit under division (G) of section of the (13) The nonresident credit under division (A) of section of the (14) The credit for a resident's out-of-state income under division (B) of section of the

16 16 (15) The credit for employers that enter into agreements with child day-care centers under section of the (16) The credit for employers that reimburse employee child care expenses under section of the (17) The credit for adoption of a minor child under section of the (18) The credit for purchases of lights and reflectors under section of the (19) The job retention credit under division (B) of section of the (20) The credit for purchases of new manufacturing machinery and equipment under section or section of the (21) The second credit for purchases of new manufacturing machinery and equipment and the credit for using Ohio coal under section of the (22) The job training credit under section of the (23) The enterprise zone credit under section of the Revised Code; (24) The credit for the eligible costs associated with a voluntary action under section of the (25) The credit for employers that establish on-site child day-care centers under section of the (26) The ethanol plant investment credit under section of the (27) The credit for purchases of qualifying grape production property under section of the (28) The export sales credit under section of the Revised Code; (29) The credit for research and development and technology transfer investors under section of the (30) The enterprise zone credits under section of the Revised Code; (31) The research and development credit under section of the (32) The refundable credit for rehabilitating a historic building under section of the (33) The refundable jobs creation credit under division (A) of section of the (33)(34) The refundable credit for taxes paid by a qualifying entity granted under section of the

17 17 (34)(35) The refundable credits for taxes paid by a qualifying pass-through entity granted under division (J) of section of the (35)(36) The refundable credit for tax withheld under division (B)(1) of section of the (36)(37) The refundable credit under section of the Revised Code for losses on loans made to the Ohio venture capital program under sections to of the Revised Code. (B) For any credit, except the credits enumerated in divisions (A)(32) to (36)(37) of this section and the credit granted under division (I) of section of the Revised Code, the amount of the credit for a taxable year shall not exceed the tax due after allowing for any other credit that precedes it in the order required under this section. Any excess amount of a particular credit may be carried forward if authorized under the section creating that credit. Nothing in this chapter shall be construed to allow a taxpayer to claim, directly or indirectly, a credit more than once for a taxable year. SECTION 2. That existing sections , , , , and of the Revised Code are hereby repealed.

18 18 SECTION 3. The amendment by this act of section of the Revised Code takes effect on the first day of the first month following the effective date of this act. Speaker of the House of Representatives. President of the Senate. Passed, 20 Approved, 20 Governor.

19 19 The section numbering of law of a general and permanent nature is complete and in conformity with the Revised Code. Director, Legislative Service Commission. Filed in the office of the Secretary of State at Columbus, Ohio, on the day of, A. D. 20. Secretary of State. File No. Effective Date